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India becomes 3rd Largest Aviation Market in Domestic Passenger Traffic

According to CAPA's statistics India has occupied the third spot after US and China in terms of domestic aviation market beating Japan

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New Delhi, March 26, 2017: India has beaten Japan to become the third largest aviation market in terms of domestic passenger traffic, an industry report has stated.

In its latest report, Sydney-based aviation think-tank Center for Asia Pacific Aviation has shown that the domestic air passenger traffic in India stood at 100 million in 2016 and was behind only the US (719 million) and China (436 million). India gained the third spot globally by beating Japan, which flew 97 million domestic passengers in 2016, CAPA said.

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A consistent growth of 20 -25 per cent has been shown by domestic air traffic throughout 2015 and 2016, peaking in January this year at 25.13 per cent. However, the domestic travel demand rose 16 percent in February this year, that put an end to the long streak of over 20 per cent.

According to CAPA, India which occupied the fourth position in terms of overall air passenger traffic (both domestic and international) along with the UK, is also gradually getting closer to becoming the third largest one by March next year.

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Kapil Kaul, head of CAPA India believes that India will become the third largest market 2-3 years ahead of what was projected because of the much higher growth.

According to PTI reports, Japan flew 141 million passengers in 2016 and was ahead of India whose total air passenger traffic was 131 million in the previous year, as per CAPA’s statistics.

In 2016 United States enjoyed that top position with 815 million passengers. China followed with 490 million, according to the report.

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“While we will reach the third spot for both domestic and international air travel ahead of the projected period, we will remain at that position for a very long time because it will not be easy to surpass China and the US,” Kaul added.

– prepared by Durba Mandal of NewsGram. Twitter: @dubumerang

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China’s Economy Slows As It Tries to Diffuse Trade War With U.S.A.

The impact on China’s economy from the Sino-U.S. trade frictions are not apparent yet, Mao cautioned, adding that the nation will face more “external” uncertainties in 2019.

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China
A woman cleans the window at a Aston Martin luxury car dealership in Beijing, Dec. 12, 2018. Auto sales have fallen sharply in China. VOA

China’s November retail sales grew at their weakest pace since 2003 and industrial output rose the least in nearly three years as domestic demand softened further, underlining rising risks to the economy as China works to defuse a trade dispute with the United States.

The world’s second-largest economy has been loosing momentum in recent quarters as a multi-year government campaign to curb shadow lending put increasing financial strains on companies in a blow to production and investment.

The slowdown in Chinese industries has started to weigh on consumer sentiment this year, tapping the brakes on retail sales. Big-ticket items have been the first to be hit, with auto sales declining since May.

Pace of retail sales slows

Retail sales rose 8.1 percent in November from a year earlier, data from the National Bureau of Statistics showed Friday, below expectations for an 8.8 percent rise and the slowest since May 2003. In October, sales increased 8.6 percent. Auto sales fell a sharp 10.0 percent from a year earlier.

 

China
People try garments at a retail and wholesale clothing mall in Beijing, July 16, 2018. China’s economic growth slowed in the quarter ending in June, adding to challenges for Beijing amid a mounting tariff battle with Washington. VOA

 

The slump was in line with data released by China’s top auto industry association, which showed sales dived 14 percent in November, the steepest drop in nearly seven years.

The stresses on broad activity have been compounded by a sharp escalation in China’s trade dispute with the United States, which has threatened to fracture global supply chains, chill investment, exports and growth.

Pace of industrial output slows

Industrial output rose 5.4 percent in November, missing analysts’ estimates and matching the rate of growth seen in January-February 2016. Factory output had been expected to grow 5.9 percent, unchanged from October’s pace.

Over the weekend, China reported far weaker than expected November exports and imports, reflecting slower global demand and waning domestic factory activity as profit margins narrow.

With economic growth at its weakest since the global financial crisis, Chinese policymakers are ramping up spending, pushing banks to increase lending and cutting taxes to shore up businesses and ward off a more damaging slump.

USA, China, Trade War, economy
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The weaker November industrial output and retail sales growth numbers showed that downward pressure on the economy is increasing, said Mao Shengyong, spokesman at the statistics bureau.

Still on track to hit growth target

But China is on track to hit its 2018 economic growth target of around 6.5 percent, Mao told reporters.

“On balance, the latest data show an economy that is under pressure on both the external and domestic front, with policy efforts to shore up growth still falling short,” Julian Evans-Pritchard, senior China economists at Capital Economics, wrote in a note.

A temporary 90-day trade war truce agreed by the United States and China early this month may have removed some of the immediate pressure on the economy.

Also Read: The Escalating Trade War Between China And U.S. Calls A Truce

The impact on China’s economy from the Sino-U.S. trade frictions are not apparent yet, Mao cautioned, adding that the nation will face more “external” uncertainties in 2019.

Indeed, even in the unlikely event the world’s top two economies reach a durable resolution in their dispute, ebbing domestic demand, mounting household debt and a cooling real estate sector point to a further slowdown in growth next year. (VOA)